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A Good Analysis of AMD's Current Financial Situation

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April 13, 2007 2:13:08 PM

I've lately seen a lot of threads and comments relating to AMD current financial situation and challenges. For those interested in a decent analysis of AMD's current financial situation that actually bothers to go through the numbers I'd recommend this:

http://www.beyond3d.com/content/articles/32/
April 13, 2007 3:59:35 PM

Quote:
I've lately seen a lot of threads and comments relating to AMD current financial situation and challenges. For those interested in a decent analysis of AMD's current financial situation that actually bothers to go through the numbers I'd recommend this:

http://www.beyond3d.com/content/articles/32/


Interesting stuff... very similar to my thoughts and estimates.
April 13, 2007 5:01:58 PM

Quote:
I've lately seen a lot of threads and comments relating to AMD current financial situation and challenges. For those interested in a decent analysis of AMD's current financial situation that actually bothers to go through the numbers I'd recommend this:

http://www.beyond3d.com/content/articles/32/


Interesting stuff... very similar to my thoughts and estimates.

"Simply put, the worst might be yet to come for AMD's CPU business."

"...we wish them to best of luck in getting new products out of the door and in finding sources of financing..."

Hope the AMD fanboys pay attention to this and the 10-K it looks very much like a stock dilution on the order 300+M shares is on the way during 2007 since they are required to repay debt with 50% of any stock offering.
I like AMD but AMD certainly won't be in my portfolio while in this situation but I might buy in again after dilution at $6 or $7.
Related resources
April 13, 2007 5:19:28 PM

Quote:

"...we wish them to best of luck in getting new products out of the door and in finding sources of financing..."

Hope the AMD fanboys pay attention to this and the 10-K it looks very much like a stock dilution on the order 300+M shares is on the way during 2007 since they are required to repay debt with 50% of any stock offering.


Yeah, the terms of that 2.5B Morgan Stanley loan are just insane. They sold their soul to finance the ATI acquisition. They overpaid, and they overpaid with cash they didn't have.

There is a bit of old business wisdom that goes, as long as you're not spending Other People's Money, you can weather almost any storm. Once Other People's Money gets involved though, look out when things get bad. Because of extreme volatility in the industry, many Semiconductor and Semiconductor Equipment companies have long heeded this advice. You'll see lower debt levels in this industry then in almost any comparable industry. AMD chose to ignore this wisdom, and it may end up paying dearly.
April 13, 2007 5:21:43 PM

AMD has been playing games -

Mar 21st

An AMD spokesman Wednesday stuck by the company's $2.5 billion spending target but declined to say whether or not the chipmaker will seek additional financing this year.

April 9th -

AMD announces that they will cut the $2.5B spending by $500M.


:roll:
April 13, 2007 5:25:24 PM

I have my doubts that the stock dilution will occur. It can only happen if the stockholders approve it, but will any stockholder willingly give away half the value of his investment? There are large company holdings of AMD stock as well as individuals, so would they willingly vote away millions of dollars in their holdings? Like I say, I doubt it.

The other effect of such a dilution would be that AMD stock could easily enter the penny stock arena of junk bonds. A simple dilution as asked by AMD would result in the 50% loss of value, dropping the present $14 dollar a share price to $7 per share. But a panic sell off could set in which might drive the price down to $2 or $3. AMD could possibly recover from that, rewarding anyone who bought a $3 stock richly, but it could as easily drive it into bankruptcy and the stock holders loose everything.

In my opinion, the next couple months will require a lot of gambling by people with nerves of steel among those who buy AMD stock.
April 13, 2007 5:30:05 PM

Quote:
I've lately seen a lot of threads and comments relating to AMD current financial situation and challenges. For those interested in a decent analysis of AMD's current financial situation that actually bothers to go through the numbers I'd recommend this:

http://www.beyond3d.com/content/articles/32/


Interesting stuff... very similar to my thoughts and estimates.

"Simply put, the worst might be yet to come for AMD's CPU business."

"...we wish them to best of luck in getting new products out of the door and in finding sources of financing..."

Hope the AMD fanboys pay attention to this and the 10-K it looks very much like a stock dilution on the order 300+M shares is on the way during 2007 since they are required to repay debt with 50% of any stock offering.
I like AMD but AMD certainly won't be in my portfolio while in this situation but I might buy in again after dilution at $6 or $7.

I'd guess that they would dilute about 200M-400M shares... bringing the price to around $8-9.
April 13, 2007 5:31:53 PM

Quote:
I've lately seen a lot of threads and comments relating to AMD current financial situation and challenges. For those interested in a decent analysis of AMD's current financial situation that actually bothers to go through the numbers I'd recommend this:

http://www.beyond3d.com/content/articles/32/


Quote:
Conclusion
The second quarter will see further ASP and margin declines, as AMD's April 9th price cuts take effect. However, there is no reason to believe that market share will go down further, at least in desktops, as AMD is pricing some of their chips very aggressively, even after taking into consideration Intel's presumed April 22th cuts.

In early June, Intel will introduce the Pentium E21xx and the Celeron 4xx product families, based on the Conroe-L core, thus getting rid of the last part of their line-up that wasn't competitive with AMD's: the entry-level Netburst-based processors. As we've said in the past, we believe Conroe-L to be a dual-core chip with one core disabled for the Celeron 4xx family. It should thus measure around 85mm², which is significantly smaller than AMD's 65nm dual-core offerings, but bigger than their single-core offerings (although with possibly higher yields due to redundancy and a more mature process...)

Conroe-L, according to early benchmarks, won't really be substantially faster than AMD's offerings at a given price point. But unlike previous Intel offerings in that market segment, they will be fully competitive. This, along with Intel's launch of the Santa Rosa platform, could hurt AMD's market share in Q3. So between today and the end of Q3, both AMD's market share and ASPs are likely to go down further, we believe. Simply put, the worst might be yet to come for AMD's CPU business. Even the higher ratio of 65nm parts won't offset much of anything, sadly.

Given the net losses that we estimate AMD will need to operate under in Q1, Q2 and Q3, we wish them to best of luck in getting new products out of the door and in finding sources of financing in order to weather the storm in what will be one of the company's toughest years, ever. Either way, we look forward to AMD's Q107 conference call on April 19th to get some more official information on AMD's financial position, and to confirm or deny our analysis.
April 13, 2007 5:48:19 PM

Quote:
I have my doubts that the stock dilution will occur. It can only happen if the stockholders approve it, but will any stockholder willingly give away half the value of his investment? There are large company holdings of AMD stock as well as individuals, so would they willingly vote away millions of dollars in their holdings? Like I say, I doubt it.


They won't do it because they want to, they will do it because they have to. The alternative is Chapter 11 and a stock price of zero. As it stands they will run out of cash without an equity offering (public or private), and probably before the end of Q3. Cash certainly does not have to go all the way to zero before suppliers start demanding cash up front and it becomes impossible to finance day to day operations. The only way dilution will not happen is if someone decides to buy AMD or MS renegotiates the loan. Neither is likely at this point.
April 13, 2007 5:56:28 PM

Quote:
Hope the AMD fanboys pay attention to this and the 10-K it looks very much like a stock dilution on the order 300+M shares is on the way during 2007 since they are required to repay debt with 50% of any stock offering.
I like AMD but AMD certainly won't be in my portfolio while in this situation but I might buy in again after dilution at $6 or $7.


It sickens me to my stomach that Intel fanboys rejoice in the news of AMD's struggles. AMD, as of now, is the only company that threatens Intel's monopolistic power and all the negatives that come with it (high prices, slow innovation) - and believe me, they will come should AMD go away.

As of today, all users should be rooting for AMD to say in and come up with an innovative product that will push Intel's buttons like AMD64 had. 'Cause in that case, everyone benefits.

That is not to say that people should not buy the best product for their needs. But piling on an underdog is hardly sporting.
April 13, 2007 5:57:19 PM

I know a lot of people speculate that eventually AMD will be an attractive LBO... but I was mulling it over the other night.

1) AMD has a 30 history of being rarely profitable
2) Technology depreciates so fast in this sector
3) Immense Capex requirements


LBOs typically like cash cow businesses that either: need some balance sheet help, a business model tweak, or a company that just needs to be broken-up to release value.

I don't see it here. Can anybody point to a high tech LBO with similar characteristics?
April 13, 2007 6:02:44 PM

Periander:
Thank you for pointing out the referenced article. I have spent the last hour reviewing several articles at beyond3d.com & have found them to be of the technical depth that I have been missing at THG recently. My brain is aching :)  :)  :) 
April 13, 2007 6:13:19 PM

Quote:
Hope the AMD fanboys pay attention to this and the 10-K it looks very much like a stock dilution on the order 300+M shares is on the way during 2007 since they are required to repay debt with 50% of any stock offering.
I like AMD but AMD certainly won't be in my portfolio while in this situation but I might buy in again after dilution at $6 or $7.


It sickens me to my stomach that Intel fanboys rejoice in the news of AMD's struggles. AMD, as of now, is the only company that threatens Intel's monopolistic power and all the negatives that come with it (high prices, slow innovation) - and believe me, they will come should AMD go away.

As of today, all users should be rooting for AMD to say in and come up with an innovative product that will push Intel's buttons like AMD64 had. 'Cause in that case, everyone benefits.

That is not to say that people should not buy the best product for their needs. But piling on an underdog is hardly sporting.

First of all I am anything but an Intel fan the only Intel chip I have had in last 10 years is a Core2Duo because AMD dropped the ball big time and I was to building a rig for my son for college.

I don't root for AMD to fail I hope they succeed but pull your head out of the sand and pay attention they are in SERIOUS trouble. You obviously are not an investor or you would have learned long ago to ignore any feeling you may have for a company when investing. I hate Microsoft too but that doesn't stop me from buying it too at times but the fact is AMD is a piss poor buy right now and far more likely to go down before it ever goes up.
April 13, 2007 6:19:58 PM

Quote:
I have my doubts that the stock dilution will occur. It can only happen if the stockholders approve it, but will any stockholder willingly give away half the value of his investment? There are large company holdings of AMD stock as well as individuals, so would they willingly vote away millions of dollars in their holdings? Like I say, I doubt it.


They won't do it because they want to, they will do it because they have to. The alternative is Chapter 11 and a stock price of zero. As it stands they will run out of cash without an equity offering (public or private), and probably before the end of Q3. Cash certainly does not have to go all the way to zero before suppliers start demanding cash up front and it becomes impossible to finance day to day operations. The only way dilution will not happen is if someone decides to buy AMD or MS renegotiates the loan. Neither is likely at this point.

I understand that, but a different scenario is that the major investors will simply sell off their holdings before the shareholders meeting, which will also drive the price into the dumpster. Its not a comfortable position for the stockholders either way, nor does it give any reason for anyone to buy at the present time or even for the next 6 months or so.

A thing that has puzzled me to no end is the attitude and statements of the AMD CEO's, that they have the R600 ready to sell and have had it ready for months, yet they haven't released it. It makes no sense to me. If the card is really ready, releasing it would give a cash inflow and a way to start paying off debts and give better security for obtaining future loans. The only good reason I can think of for withholding it is if they are trying to attract a buyout offer from IBM or some other company. But having a product and refusing to release it for sale borders on insanity.

@ Russki: I've been buying AMD cpu's for over 6 years, along with few ATI video cards. I have no desire for AMD to fail, but would, in fact, wish it could continue and be successful. I'd like to build a new computer this summer with an AMD cpu, or at minimum have a choice of whether to buy from AMD or Intel. But I've been investing in stocks since 1966 and I'm a realist. I've seen companies crash and burn before, and its never pretty. I think what AMD needs most is a change in leadership, much as Chrysler had back around 1980, when Lee Iacocca took over. But at that, Chrysler survived mainly with a bailout from the government. AMD won't get that.
April 13, 2007 6:25:58 PM

Quote:
I have my doubts that the stock dilution will occur. It can only happen if the stockholders approve it, but will any stockholder willingly give away half the value of his investment? There are large company holdings of AMD stock as well as individuals, so would they willingly vote away millions of dollars in their holdings? Like I say, I doubt it.


They won't do it because they want to, they will do it because they have to. The alternative is Chapter 11 and a stock price of zero. As it stands they will run out of cash without an equity offering (public or private), and probably before the end of Q3. Cash certainly does not have to go all the way to zero before suppliers start demanding cash up front and it becomes impossible to finance day to day operations. The only way dilution will not happen is if someone decides to buy AMD or MS renegotiates the loan. Neither is likely at this point.

I understand that, but a different scenario is that the major investors will simply sell off their holdings before the shareholders meeting, which will also drive the price into the dumpster. Its not a comfortable position for the stockholders either way, nor does it give any reason for anyone to buy at the present time or even for the next 6 months or so.

A thing that has puzzled me to no end is the attitude and statements of the AMD CEO's, that they have the R600 ready to sell and have had it ready for months, yet they haven't released it. It makes no sense to me. If the card is really ready, releasing it would give a cash inflow and a way to start paying off debts and give better security for obtaining future loans. The only good reason I can think of for withholding it is if they are trying to attract a buyout offer from IBM or some other company. But having a product and refusing to release it for sale borders on insanity.

@ Russki: I've been buying AMD cpu's for over 6 years, along with few ATI video cards. I have no desire for AMD to fail, but would, in fact, wish it could continue and be successful. I'd like to build a new computer this summer with an AMD cpu, or at minimum have a choice of whether to buy from AMD or Intel. But I've been investing in stocks since 1966 and I'm a realist. I've seen companies crash and burn before, and its never pretty. I think what AMD needs most is a change in leadership, much as Chrysler had back around 1980, when Lee Iacocca took over. But at that, Chrysler survived mainly with a bailout from the government. AMD won't get that.

Wasn't sure of your age... I've seen this game played out before as well. This song and dance is all to familiar. Has anybody noticed that, in the latest releases, there have been zero reassurances that they are adequately funded for 2007.
April 13, 2007 6:42:49 PM

For those speculating on how far AMD's stock price can fall with a new stock issue, it isn't so simple as taking the current market capitalization and dividing by the number of total shares. There is an aspect of supply and demand going on as well. There are only so many investment dollars available out there. There may not be a whole lot of additional demand for AMD shares, which could send the stock price down significantly, especially if there is a huge volume of shares offered. The 50 day average volume is approximately 25million shares. It probably wouldn't be prudent to offer too many more than that, maybe 50-100million shares.
April 13, 2007 7:05:02 PM

So after spending all this time posting on AMD, are you short yet?
April 13, 2007 7:37:58 PM

Quote:
So after spending all this time posting on AMD, are you short yet?


I know you were talking to Baldeagle... but I'm waiting till Q1 earnings. If this thing is heading towards major dillution or Chp11, no rush to short yet. There are plenty of longs willing to keep it above 12 for the time being. Also, it might even see a pop with April 23... so why risk it?
April 13, 2007 7:43:25 PM

Quote:
For those speculating on how far AMD's stock price can fall with a new stock issue, it isn't so simple as taking the current market capitalization and dividing by the number of total shares. There is an aspect of supply and demand going on as well. There are only so many investment dollars available out there. There may not be a whole lot of additional demand for AMD shares, which could send the stock price down significantly, especially if there is a huge volume of shares offered. The 50 day average volume is approximately 25million shares. It probably wouldn't be prudent to offer too many more than that, maybe 50-100million shares.


What they want to do and what they have to do are different things. They are going to need probably 300+M shares issued by end of year to stay alive and keep ahead of a loan default.
April 13, 2007 7:49:01 PM

A breath of fresh air from the AMD fanboi blogs claiming peaches and cream :D 
April 13, 2007 8:02:02 PM

Quote:
Quote:
they got distracted with periferal devices

What peripheral devices are you talking about?


Quote:

4x4 was a testbed release to enthusiasts not the intended final.

Currently it looks bad... plus didnt they drop the FX-70?

The Radeon HD-2000 series should be a great product that should alleviate some pain
April 13, 2007 9:06:49 PM

Quote:
So after spending all this time posting on AMD, are you short yet?


I don't play short that's best left to the professionals that monitor their stock continuously which I don't have time for.

The shorts could just as easily get killed if they intro Barcy and it is 40% better than Core2Duo across the board, and they take orders at the into for shipment the next day we could be looking at $20 by end of the month talk about having your shorts cleaned out!
April 13, 2007 9:10:58 PM

Quote:
So after spending all this time posting on AMD, are you short yet?


I don't play short that's best left to the professionals that monitor their stock continuously which I don't have time for.

The shorts could just as easily get killed if they intro Barcy and it is 40% better than Core2Duo across the board, and they take orders at the into for shipment the next day we could be looking at $20 by end of the month talk about having your shorts cleaned out!

naked shorts are bad ideas... a good short strategy is to buy some call options to hedge upside risk.
April 13, 2007 10:05:47 PM

Quote:

naked shorts are bad ideas... a good short strategy is to buy some call options to hedge upside risk.


When you call your shorts do they actually come? :lol:  :lol: 

I prefer just playing long and moderate risk as I don't have time to daily check on my money. AMD is like playing with a live a grenade we know it goes somewhere is that $20 or $2 too much uncertainty right now for getting in short or long although short is definitely the better play because we know Q1 is bad. Although with the dilution vote pending how does a short work in a chapter 11 company since the stock doesn't trade kind of like the green 0 on the crap wheel wipeout I guess you lose put, call, long, short?
April 13, 2007 10:12:12 PM

Quote:
AMD has been playing games -

Mar 21st

An AMD spokesman Wednesday stuck by the company's $2.5 billion spending target but declined to say whether or not the chipmaker will seek additional financing this year.

April 9th -

AMD announces that they will cut the $2.5B spending by $500M.


:roll:



You don't shout bad news before you have to. How is that playing games?
April 13, 2007 10:19:04 PM

Quote:
AMD has been playing games -

Mar 21st

An AMD spokesman Wednesday stuck by the company's $2.5 billion spending target but declined to say whether or not the chipmaker will seek additional financing this year.

April 9th -

AMD announces that they will cut the $2.5B spending by $500M.


:roll:



You don't shout bad news before you have to. How is that playing games?

No, typically a company will just have a "no comment." Sounds like they are in disarray over there...

One possible reason-

they thought they were close to securing financing up until Mar 21st (thus no reason to back down on the spending figure).

BUT, something went wrong (aka the funding fell through) and they had to do a major strategy shift.

All the pieces are just not adding up for AMD.
April 13, 2007 10:31:59 PM

Quote:
For those speculating on how far AMD's stock price can fall with a new stock issue, it isn't so simple as taking the current market capitalization and dividing by the number of total shares. There is an aspect of supply and demand going on as well. There are only so many investment dollars available out there. There may not be a whole lot of additional demand for AMD shares, which could send the stock price down significantly, especially if there is a huge volume of shares offered. The 50 day average volume is approximately 25million shares. It probably wouldn't be prudent to offer too many more than that, maybe 50-100million shares.


What they want to do and what they have to do are different things. They are going to need probably 300+M shares issued by end of year to stay alive and keep ahead of a loan default.

AMD is sitting on $1.4Billion in cash. Further, it is reasonable to expect that R600 will raise revenue at the former ATi, which is probably 10-20% of their revenue problem. They are losing money at a pretty good clip, but shouldn't need more than $0.5Billion to help their situation. Although half has to go toward debt, it will help reduce their debt burden. I think they can get away with selling maybe 100million shares at something like $9-$10, presuming they don't have more bad news.
April 13, 2007 11:10:52 PM

Quote:
Quote:
they got distracted with periferal devices

What peripheral devices are you talking about?


Quote:

4x4 was a testbed release to enthusiasts not the intended final.

Currently it looks bad... plus didnt they drop the FX-70?

The Radeon HD-2000 series should be a great product that should alleviate some pain

When the 4x4 was first getting talked about, it was supposed to be the answer to C2D. I myself was looking forward to it, with the FX76 cpu in particular. The 4x4 turned into a disaster. It might have some purpose in business aplications, but none at all in gaming. Further, the thing was a furnace.

I believe the FX70 is still in production and it was the FX76 that got dropped. The FX76 had a few things going for it that the FX70-74 did not, but AMD was forced to make cuts and the FX76 was one of the first things to get cut. Probably not a great loss in the long run, unless a person already had the mobo to fit it.

Yes, the R600/2000 series video card should help, but only if it gets released. Statements that get made about how AMD has it ready, in stock and available for shipping, but AMD will not release it until next month or sometime make me wonder about the sanity of the AMD execs. If they have the product and are refusing to sell it, they must be in a suicidal frame of mind. Why wouldn't they sell a product that would get some cash flow and let them pay bills? The other side of my thinking is that their statements about the R600 are all fantasy, something to string along investors and keep bill collectors at bay. That makes me very edgy about buying any of their stock. I have no answer for this, only speculation.
April 14, 2007 3:40:52 AM

Quote:
Quote:
they got distracted with periferal devices

What peripheral devices are you talking about?


Quote:

4x4 was a testbed release to enthusiasts not the intended final.

Currently it looks bad... plus didnt they drop the FX-70?

The Radeon HD-2000 series should be a great product that should alleviate some pain

When the 4x4 was first getting talked about, it was supposed to be the answer to C2D. I myself was looking forward to it, with the FX76 cpu in particular. The 4x4 turned into a disaster. It might have some purpose in business aplications, but none at all in gaming. Further, the thing was a furnace.

I believe the FX70 is still in production and it was the FX76 that got dropped. The FX76 had a few things going for it that the FX70-74 did not, but AMD was forced to make cuts and the FX76 was one of the first things to get cut. Probably not a great loss in the long run, unless a person already had the mobo to fit it.

Yes, the R600/2000 series video card should help, but only if it gets released. Statements that get made about how AMD has it ready, in stock and available for shipping, but AMD will not release it until next month or sometime make me wonder about the sanity of the AMD execs. If they have the product and are refusing to sell it, they must be in a suicidal frame of mind. Why wouldn't they sell a product that would get some cash flow and let them pay bills? The other side of my thinking is that their statements about the R600 are all fantasy, something to string along investors and keep bill collectors at bay. That makes me very edgy about buying any of their stock. I have no answer for this, only speculation.

Yup. AMD is potentially walking a path to a footnote in the history books..."A company with a strong product line, increasing market share and a bright future was managed into C11 by a reactionary leadership who didnt understand their own products, heed their production staff, and forgot who their consumer was "
April 14, 2007 4:10:28 PM

Quote:
and forgot who their consumer was


More like they were arrogant about their chip design and then found a bunch of new toys to play with and forgot everyone.

If AMD doesn't get its act together quick, maybe we can adapt an old nursery rhyme for them; "AMD sat on a wall, AMD had a great fall. And all the CEO's horse's and all the CEO's men couldn't put AMD back together again". For the moment, AMD seems to act more like the Emperor in "The Emperor's New Clothes"; they are imagining all their glorious new technology, but everyone else (except maybe the Baron) sees it as nothing.
April 14, 2007 6:55:30 PM

Quote:
and forgot who their consumer was


More like they were arrogant about their chip design and then found a bunch of new toys to play with and forgot everyone.

Na they didnt forget everyone :wink: .

Actaully, they were like a woman. They just wanted to dance with someone new, but they wanted to do it to the old same song, in the same old joint, with their ex-beau waiting pateniently. They werent prepared to go to the new joint, with the different music.
April 14, 2007 8:05:21 PM

Thats a tall order to fill.
April 14, 2007 8:12:01 PM

AMD would be better off doing a Toyota and slowing taking market share. Grabbing 10-20% more than what they have brings its own share of woes.
April 14, 2007 8:36:05 PM

Vern you and I know that will happen when pigs fly and 9-inch stops supporting AMD. This is business man, not a tickling match. These lads are out to hurt each other. As for Intel polishing the Netburst shit, if I had a product, and people were still buying it, do you think I'd stop them? Remember, both companies have skeletons they've buried. The thing is, everyone is looking for Intel's. As for if they can quickly gain and maintain that 40% while having the volume, if they can do it, they can do it. My only hope is they don't bite off more than they can chew.
April 14, 2007 10:14:20 PM

:arrow: You know I think having them both around is good for the consumer but business is business and if AMD can't stand the heat they should get out of the proverbial kitchen,people like Ruis have no balls.
April 14, 2007 10:20:45 PM

Quote:
and forgot who their consumer was


More like they were arrogant about their chip design and then found a bunch of new toys to play with and forgot everyone.

Na they didnt forget everyone :wink: .

Actaully, they were like a woman. They just wanted to dance with someone new, but they wanted to do it to the old same song, in the same old joint, with their ex-beau waiting pateniently. They werent prepared to go to the new joint, with the different music.

caprtivated by the mating calls of another silicon manipulator :wink:


:lol:  :lol:  :lol:  :lol: 
April 14, 2007 10:31:13 PM

:arrow: You know the sad thing is both AMD and Intel have highly intelligent engineers in their R&D depts that are totally handcuffed buy their idiot front office people who only care(trust me on this one)about how much stock they will receive for a job well done!
April 14, 2007 10:36:22 PM

Quote:
AMD would be better off doing a Toyota and slowing taking market share. Grabbing 10-20% more than what they have brings its own share of woes.


I couldnt disagree more. Ill give you one thing ,volume. If AMD is able to surmount the odds and prevail will you still maintain your distaste? Even though i think Intel is run by slime bags i do like their latest products.

But for me its boycott mode untill they have the decency to atone for their manipulation; simply admitting the error is good enough for me; they are just not real men and morals arent an existent theing for them.

At least AMD can openly admit they got distracted,intel polishes the netburst terd and puts makeup and perfume on it. Lame,,, so lame ,,,,, idiotic lame,,,,insultingly lame.

Ah, but they didnt, Vern, they didnt.

Henri and Hector kept spouting one liners "we're going to take the fight to intel", 'All is well....remain calm' 'our products are doing this and that...' ' we're going to do that, and when we do this will happen, then that....' etc etc etc . And they kept spouting that crappola right up until the numbers were released and told a different story

Cmon now bro, all we've been hearing from AMD was 'blue skys' until the reports were out, and everyone (except the few die hard Horde members) had already known things were not remotely as rosy as AMD was painting them. Long before AMD sacced up and said it publically. These guys are no better than Intel when it comes to corporate politics. Honestly, they way theyve been bumbling this year, its like they are trying to outdo three years worth of Intels fiascos in a 12 month time. "See, not only can we out value Intel....we can out-jackass them as well"
April 14, 2007 10:44:18 PM

Quote:
:arrow: You know the sad thing is both AMD and Intel have highly intelligent engineers in their R&D depts that are totally handcuffed buy their idiot front office people who only care(trust me on this one)about how much stock they will receive for a job well done!


Well, Since spud is no longer with us, I hearby lay claim to the propietary use of the word....."Word"


That said,

In reponse to gloppppp's post......Word
April 15, 2007 12:49:05 AM

Quote:
I wouldnt mind If AMD took so much market that intel was forced to sell some fabs at 90nm and 65nm.I would be overjoyed that their wrongdoings came back to take from them honestly.


Now, now, we don't want to enter fantasy land ourselves, do we? Although it does sound like a good fantasy. Let's see, can we add buying some AMD stock in the $12's and selling it in the $40's, maybe $50's?
April 15, 2007 1:50:31 AM

Quote:
This is business man, not a tickling match. These lads are out to hurt each other.

The purpose of business is profit maximisation. A focus on hurting each other is left to forum arguments, or the Mob.

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I will word your word ;)  .... the professional pay scales are socially and morally skewed completely wrong when comparing the contributions a profession provides society and the increase in the standard of living.

Medical doctors get paid well and they deserve so ... Lawyers, though, can make major bucks but in many cases are not.... the old joke, what do you call 1000 lawyers at the bottom of the ocean--- a good start.

I suppose the difference between lawyers and doctors is that a law case can have ramifications for millions of people, depending on the verdict. (E.g. the US Supreme Court, but it happens to a lesser extent in all courts). Whereas, unless they do their own version of R&D, the maximum a doctor can do per case (patient) is help that person. There are no class-action surgeries.

As for managers vs. engineers, it could be said that increasing worker productivity by 5% is worth more than getting a great engineer that works 20% harder than the last guy. Also, if the company can't market, distribute and essentially sell their product to its maximum, history seems to show that quality engineering will be worth approximately Jack (excuse the pun).
April 15, 2007 1:59:13 AM

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This is business man, not a tickling match. These lads are out to hurt each other.

The purpose of business is profit maximisation. A focus on hurting each other is left to forum arguments, or the Mob.
I.. err... umm.. damn you Synergy.. once again you foil my attempts at taking over the world with badly worded Snatch quotes. :( 

But you got what I meant, right?
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